Among my observations after more than 35 years of working with real estate professionals, investors, and affiliates is how many people accept “not right now” or a turn down as a definitive “no”. Conditions may or may not change, but that is not the main question.
Some real estate lenders and funding sources based their decisions on the property or opportunity, while others base their decisions upon the credit worthiness of the borrower. There is also the matter of how the property or opportunity is presented by the applicant. It’s like almost everything else in the business world. Sometimes the product is not very good, but how it is presented makes it look much better than it really is. It is something the advertising world is well aware of.
Within the past couple of years, I have had a couple of non-conventional lenders send applicants my way. They base their loans or funding on the value of the property or opportunity as collateral. Their strategy is that if the borrower defaults, they take over a viable income opportunity in return. The applicants they sent my way had viable properties or opportunities but were turned down. Why?
In both cases, the information and presentation of the opportunity submitted by the buyer was not strong enough to convince the decision maker to go ahead with funding. These were both instances of the funding source knowing that if the initial presentation was stronger, they would be able to get the loan done. Doing so means that everybody wins!
The applicant gets their funding and is able to complete the intended acquisition. The lender gets the deal done, resulting in profit, whether from payback or the opportunity by default. The loan rep gets his or her commission. My agency completed a couple of hours working with the applicant to rewrite or improve their business plan or proposal, with their fee being in the vicinity of $100. The applicant was happy to pay it because it could have made the difference in getting their deal or missing out.
If you are a lender or broker trying to fund a solid property or opportunity based on a weak business plan, proposal, or presentation, you have the option of sending him, her, or them my way. It has happened already where I improve their presentation, understanding exactly what the funding source is looking for, and make everyone involved a winner. Let me make you and your team “first in” on the next solid opportunity!
